A foreign exchange with a U S bank took a short position of 5,000,000 when the $ exchange rate was 1 55 Subsequently, the exchange rate has changed to 1 61 Is this movement in the exchange rate good from the point of view of the position taken by the trader By how much has the bank 's liability cha...

A foreign exchange with a U.S. bank took a short position of 5,000,000 when the $/ exchange

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A foreign exchange with a U.S. bank took a short position of £5,000,000 when the $/£ was 1.55. Subsequently, the has changed to 1.61. Is this movement in the good from the point of view of the position taken by the trader? By how much has the bank's liability changed because of the change in Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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International Financial Management

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Authors: Cheol S. Eun, Bruce G.Resnick

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Question Posted: Mar 13, 2012 05:24 AM

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A foreign exchange with a U.S. bank took a short position of 5,000,000 when the $/ exchange

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International Financial Management

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